Afeela EV is canceled: Honda and Sony end project amid market setbacks

Sony and Honda are ending Afeela, with refunds to customers and impacts on the EV market. See the key figures and what changes.

What happened

After years of anticipation, the Sony Honda Mobility joint venture has terminated the Afeela project, aligning with Honda's retreat in the EV market.

Financial and product details

Honda anticipates an accounting loss of up to 2.5 trillion yen (approximately US$ 15.7 billion) due to the slowdown in EV spending, which could lead to one of its largest annual losses since becoming a publicly traded company.

The partnership sought to combine Honda's manufacturing with Sony's focus on gaming and entertainment. The first model, the Afeela 1, was supposed to start deliveries in California later this year, priced from US$ 89,900. A second model was planned for the end of the decade.

What happens to customers

With the decision to pull back from the aggressive expansion pace, the joint venture said it no longer sees a viable path to production. Full refunds will be issued to customers who had already reserved the Afeela 1.

Market context

The decision highlights the challenges for new entrants in the EV market, with established manufacturers like Ford and Stellantis also reducing EV investments amid weak demand and changing public policies. Technology companies have faced additional difficulties: Apple dropped its EV project in 2024, and only a few non-traditional players, like Xiaomi, have managed to bring vehicles to market.

Future of the partnership

Sony Honda Mobility stated that it will continue discussions with the parent companies regarding future initiatives but gave no indication of plans to revive Afeela.

Curiosity: passion for cars

For Natalie Neff, professional life has been surrounded by automobiles since the start of her career. In her garage, a 2017 Honda Ridgeline, a 1972 VW Beetle, a 1999 Ducati Monster, and a purple and white five-speed Schwinn coexist.

Inviting you to comment

What do you think: in the current scenario, can traditional brands compete with tech companies in the EV sector, or is the path different? Leave your opinion in the comments below.